Auto insurance provides people with a form of financial protection in
case something unexpected and costly happens to their vehicle.
Liability insurance is a legal requirement and some states require
drivers to have both property damage liability and uninsured or
underinsured motorist coverage. However, based on your location and
personal driving needs, basic auto insurance coverage might not be
enough. We previously covered everything you need to know about auto
insurance so let's talk about what will be covered by different types
Different Types of Car Insurance
There are several types of auto insurance: personal
injury protection, collision coverage, comprehensive coverage, medical
payments coverage, uninsured and underinsured motorist coverage, and
auto liability coverage. Note that the required coverages may differ
depending on where you live but carrying auto insurance is always
important. It's important to understand what type of car insurance is
required in your state and what you need from your auto insurance
My Vehicle Was Damaged in a Natural Disaster
Natural disasters like hurricanes, storms, earthquakes, fires, and
floods can have devastating effects on our health and property.
However, it is often one of the last things that people consider when
building an auto insurance policy. Your car is one of the most
valuable assets that you own and having it destroyed or damaged due to
a natural disaster is a huge loss. It's therefore vital that you
purchase a car insurance policy that covers you sufficiently in these
In the event of a natural disaster, one of the last things that come
to mind is your car, unless you need to speed off somewhere fast. But
like the rest of your personal property, your car can be damaged or
destroyed in a natural disaster. By being proactive and getting
additional car insurance coverage that will cover you in the event of
a natural disaster, you can save yourself from paying the costly price
My Car Was Totaled and I Still Owe Money
Having your car totaled is inconvenient, but having it totaled when
you still owe money on it can be financially devastating. With
40% of Americans having car loans, this is not an unlikely scenario. Recently, more and more people
have needed to extend the duration of their car loan; the average new
car loan has increased to nearly six years. Another fact that we all
know is how quickly a car depreciates, which is the reason why many
people owe more on their car loans than what the car is actually
If your car is totaled and you still owe more than the total value,
your car insurance will only pay the
actual cash value (ACV) of your car. This is the fair
market value of the car at the time that it was damaged. Auto
insurance companies will not pay for more than the value of your car
when they consider your vehicle totaled, and your collision deductible
will be taken out from the actual cash value. For example, if you
still owe $15,000 on a vehicle that is worth $10,000, and you have a
$2,000 deductible, then your car insurance company will pay out $8,000
for your totaled car. Auto insurance companies might write you a
check, but the standard process is for it to go directly to your
As you can see in the scenario above, you still have a lot of money to
pay back. Any amount that is still owed on the car after your car
insurance provider writes the check is your responsibility. You will
find gap insurance extremely helpful especially if you have to pay
more than the value of your car. Gap insurance will
pay the difference between what's still owed and the actual cash value
of your car. If you're lucky, your gap insurance policy will cover
enough to take care of your collision deductible as well.
Why You Should Buy Comprehensive Coverage
Comprehensive auto insurance coverage provides protection against
damage and theft caused by an incident other than a
collision. This includes everything from falling trees to rocks, hail,
vandalism, flood, fire, and other hazards. Comprehensive auto
insurance is important because of how unpredictable and costly life
can be. These "Acts of God," as insurance companies call them, can
happen to anyone and at any time. After all, it's not very often that
someone with a car lives in the middle of nowhere where there's no
possible chance that a natural disaster will strike. Comprehensive
coverage will lessen the fear of your car getting damaged without you
having the cash on-hand to pay for repairs or replacements. You will
have monthly dues, but you will also have the coverage needed to make
sure that you have a perfectly working car in years to come.
If you want to make sure that you're covered in the event that your
vehicle is stolen, comprehensive coverage is important to have. This
covers damages to the stolen vehicle, including declared accessories,
spare parts, and total loss of the car. If your vehicle is stolen, you
can claim up to the fair market value of the car in case the car
cannot be recovered. The value of your vehicle minus the depreciation
value will determine how much you receive from your provider. Remember
that this only covers the cost to repair or replace your vehicle and
that personal items inside of the car are not covered.
As long as you follow the right procedure, comprehensive car insurance
will cover the cost in case your car gets vandalized. If this happens
to you, make sure to report the vandalism to the local authorities so
your insurance company is able to obtain the police report for your
claim. It is also important to make note of all the damage done to
your car and take photos that will serve as proof. Once you have
reported the incident to the police and taken photos of the damage,
you should contact your auto insurance company in order to file a
claim. You will need to send them the list of damages you collected
and include the photos that you took and a list of any items that were
If your vehicle is damaged as a result of a falling object, you may be
covered under your comprehensive coverage. Loss due to a falling
object is covered by your comprehensive coverage because it does not
involve a collision with another vehicle.
Coverage in the event of a fire is also included with your
comprehensive coverage. It will cover any damage or loss due to fire.
The car insurance company will honor your claim as long as there was
an actual fire that damaged the electrical components of your car.
Accidents with Animals
Animals can be unpredictable, and we understand that. An accident
involving an animal is never easy, but we want you to have peace of
mind when it comes to whether your vehicle is covered or not.
Accidents involving animals are usually covered by your comprehensive
coverage. This can vary depending on the type of animal you hit
because if the animal has an owner, the owner is typically held
responsible for the damage.
Filing a Claim for These Policies
Filing a claim, regardless of the coverage chosen, typically has the
same procedure. Begin by reading through your auto insurance policy
and talking to your agent about any uncertainties. Understand what it
covered by your policy - roadside assistance, free towing, injuries,
third-party liability, and your own vehicle's damage. Make sure that
you have a copy of your insurance in your vehicle at all times.
If you have been involved in an accident, the first thing you need to
remember is to stay calm. Check to see if you and your passengers are
okay and call for medical assistance if needed. Make sure that your
surroundings are safe before touching or
moving anything out of the vehicle. You may also want to put up your
early warning device (reflective triangles) and turn on your hazard
lights to inform other drivers that there has been an accident.
When you know that everyone is okay, you need to document the scene.
Take photos that show damage to your vehicle, the license plate, and
its relation to the road. If another car is involved in the accident
you should take pictures of that vehicle as well. Never settle with
cash and get all of the necessary information from the other driver.
You should note the name, contact number, address, license plate, and
driver's license number for any drivers involved in the accident. Call
the police immediately so the incident is reported, and your insurance
company is able to obtain a copy of the police report for your claim.
If you are unable to move your vehicle as a result of the accident,
you may contact your
provider or a towing service to move your vehicle.
Once you have collected the necessary information you should contact
your car insurance company to file your claim. When filing your claim,
you should be sure to include all of the involved parties' information
as well as any proof of injury or damage. From there, your insurance
company can provide you with a list of required documents and you
should be sure to submit everything they need as quickly as possible
to avoid any delays with your claim. The vehicle repair process varies
from company to company so you should check with your adjuster to
confirm whether you can take your vehicle to the body shop of your
choice or if they have a list of preferred body shops from which you
can choose. If you have any questions throughout the process, you
should contact your adjuster for clarification. Make sure that you and
your insurance company are both aware of when the repairs to your
vehicle are completed.
Will My Premium Go Up for Filing a Claim?
In the event of property damage to your vehicle, your premium may or
may not go up – it all depends on the circumstances. For instance, if
you file a claim for storm damage to your vehicle using your
comprehensive auto insurance coverage, you may notice an increase in
premium. The two main factors of this increase are
your auto insurance company and the type of claim. In some cases, your
history with your company and your age may contribute to this as well.
Every state has a different
set of rules that apply to auto insurance and filing a claim so it may
be helpful to look into the specifics in your state. Remember that
every claim is different, and the details of your claim will determine
if your insurance premium will go up and by how much.
No matter how hard you try to avoid it, an accident or unwanted
incident can happen at any time. Having an auto insurance policy can
help, but don't just take one out without understanding your coverage.
Always be informed of what you need to do and what your car insurance
covers, so if something happens, you are ready to file a claim.
Visit our website
to learn more about the different types of insurance we offer and get
a free online quote or find the information for your
local Acceptance Insurance agent.
Choosing the right type of coverage to make sure you are protected in
any situation can be confusing. Your local Acceptance agent can help
you determine the best coverage for you!
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